Blurring the Line between Physical and Digital Environment: The Impact of Artificial Intelligence on Customers' Relationship and Customer Experience

Artificial intelligence (AI) is shifting the way of how customers interact with organisations by blending both physical and digital environments, thereby creating a new paradigm of customer-organisation relationship. The new relationship boundary driven by AI principally challenges as well as creates opportunities for relationship marketing theories and practices. The main objective of this chapter is to present a framework named ‘physical-digital space’ to demonstrate how AI can merge the physical and digital world. To broaden the understanding, this chapter uses the lens of customer experience in relationship marketing. The framework extends the existing understanding and provides managerial implications on how an organisation can develop strategies so that a customer consciously or subconsciously develops a positive relationship with the organisation.